The European Union (EU) has partnered with venture capital firms to strengthen the region’s deep tech sector through a new initiative dubbed the Trusted Investors Network. Launched by the European Commission (EC), the network unites a group of investors who are prepared to co-invest in innovative deep-tech companies alongside the EU. The European Innovation Council (EIC) Fund, which is part of the EU research and innovation programme, Horizon Europe, will support the investments.
The initial group consists of 71 investors from across Europe, including venture capital funds, public investment banks, foundations, and corporate venture funds. Collectively, these investors manage more than €90bn in assets, positioning the Trusted Investors Network as a significant initiative to mobilise capital for the deep tech sector in Europe.
The network was officially launched by EU Commissioner for Innovation, Research, Culture, Education and Youth Iliana Ivanova at an event in Athens. “With the launch of the Trusted Investors Network, we are making an important step forward in strengthening Europe’s innovation ecosystem and ensuring that our most promising companies have the capital and support they need to scale up,” said Ivanova. “By joining forces with venture capital, we are responding to the urgent challenges laid out in the Draghi Report that call for bold action to ensure Europe’s competitiveness in critical technologies.”
Trusted Investors Network reaction to slower EU tech growth
Members of the network signed a Trusted Investors Network Charter, committing to shared values that support the growth of companies in Europe. They will collaborate with the EIC Fund to boost investment in deep tech and share best practices.
The Trusted Investors Network addresses the growing need for increased financing to help European deep-tech companies scale up. The initiative aims to build on the success of the EIC Fund, which has already invested nearly €1bn in 251 European start-ups and attracted over €4bn in co-investments from around 1,000 investors. By expanding co-investment opportunities, the network will help companies working on critical technologies secure the larger investments required to compete globally.
The network’s launch was part of the first EIC Scaling Summit, which brought together 120 companies from the EIC portfolio and national programmes. The EIC provides tailored support to network members, with a goal to scale 20% of them into unicorns, companies with a valuation of over €1bn. Together, these companies have raised more than €73m, with further funding rounds expected.
US outpaces EU and UK in AI investment
According to the EC, Trusted Investors Network provides a foundation for further development in 2025, aligning with the political guidelines of the next Commission. The EIC Fund, created to invest in high-potential companies selected through the EIC Accelerator programme, is backed by the European Investment Bank (EIB) and aims to support over 500 companies during the 2021-2027 period.
The data on AI investment in 2023 confirms the disparity between the EU and the US. The EU and the UK together attracted €11bn in private investment in AI, significantly lagging behind the US, which recorded around €67bn for the same period. This stark difference highlights the larger capital availability and investment appetite in the US for high-potential AI and deep tech ventures compared to Europe. Additionally, the number of large VC rounds in Europe remains significantly lower, reinforcing the investment gap.
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